The Fund
At a glance
| Net Assets (at Market Value) at December 31, 2011 |
$40.3 billion |
| 2011 Investment Income |
$4.3 billion |
| 2011 Pension Benefits Paid |
$1.3 billion |
| 2011 Contributions Received |
$1.8 billion |
Investment returns pay most of your pension
HOOPP’s investment program plays a critical part of keeping the pension promise for our members.
The majority of pension payments is generated from investment returns on contributions. The remainder comes from member and employer contributions. Investment returns play a significant role in ensuring that we keep the pension promise - HOOPP paid over $1.3 billion in pension benefits during 2011.
Investing for your pension
HOOPP’s goal is to deliver on the pension promise to our members. We invest appropriately to manage risk and endeavour to produce stable returns.
Our investment strategy is built on a foundation of assets that have a steady cash flow and inflation protection to meet our current pension obligations. We add return seeking assets to generate additional returns that aim to keep contributions stable and affordable for our members and sponsors. Finally, we use our investment skills to develop investment strategies unlinked to how well financial markets perform.
Measure of success
Most professional investors have one objective - to outperform the “markets”. While, we also take advantage of our investment expertise to generate extra returns for the Fund, our ultimate goal is different. HOOPP invests to ensure that pension benefits owed to current and future pensioners are paid, hence the only measure of our success lies not in outperforming market benchmarks, but in meeting our pension promise.
Managing investments “in-house” allows HOOPP to keep investment management fees low – which means more investment income goes towards paying your pensions today and in the future.
At the end of 2011, HOOPP remains fully funded. This means that the Fund’s assets are sufficient to meet our current estimate of all future pension benefits owed to our members.
With net assets of $40.3 billion, HOOPP is the largest private trust fund in Canada. For full details on HOOPP’s investments, please see the HOOPP Annual Report.
More information on HOOPP’s Fund:
- Public Equities: exposure mainly to blue chip companies to help the fund grow
- Fixed Income: bonds provide reliable income with a low level of risk
- Real Estate: ownership of high-quality real estate provides predictable cash flows and a hedge against inflation
- Private Equities: investments in private companies provide value-added returns
- Derivatives: use of derivatives reduces risks and adds value
